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According to a report from TechNews, citing Tom’s Hardware, China has introduced new export restrictions on rare earth materials critical to RF (radio frequency) and storage applications—specifically scandium and dysprosium. These measures may affect major players in the industry, including Broadcom, GlobalFoundries, Qualcomm, TSMC, Samsung, Seagate, and Western Digital, as the report highlights.
The report points out that this is not the first time China’s Ministry of Commerce has imposed export restrictions on rare earth materials. This move is considered to be a response to the U.S. government’s recent imposition of a 54% tariff on Chinese-made products under the Trump administration, as the report indicates.
As noted by Bloomberg, Beijing announced on April 4th that it would immediately impose export restrictions on seven rare earth elements. These include samarium, used in optical lasers and high-strength magnets; gadolinium, used as a contrast agent in MRI scans; terbium, used in display technologies; dysprosium, essential for magnets in wind turbines and electric vehicles; lutetium, used in oil refining; scandium, used in aerospace applications; and yttrium, used in radar systems.
Key Applications of Rare Earths Targeted in the Latest Export Restrictions
Among these materials, scandium is primarily used in radio frequency (RF) applications, especially as a key ingredient in scandium aluminum nitride (ScAlN). This material plays a critical role in high-performance filters like bulk acoustic wave (BAW) and surface acoustic wave (SAW) filters, which are essential components in front-end modules found in 5G smartphones, base stations, and Wi-Fi 6 and Wi-Fi 7 devices, according to Tom’s Hardware.
While scandium plays a specialized role in RF technology, dysprosium has a even broader range of applications. It is used in storage devices and electric vehicles, and is also critical for radiation shielding components found in nuclear reactors, spacecraft, and satellites, as the report from Tom’s Hardware indicates.
China’s Rare Earth Dominance: How Deep Is the Global Impact?
China produces about 90% of the world’s rare earth elements—17 critical materials used in defense, electric vehicles, energy, and electronics. The U.S. has only one rare earth mine and relies heavily on imports from China, as highlighted by Reuters.
As noted in the report from Tom’s Hardware, while China supplies the majority of the world’s rare earth materials, these elements are also found elsewhere, but China holds a competitive edge thanks to its efficient, vertically integrated supply chain for mining, processing, and refining.
China’s latest export restrictions underscore its dominance in resource extraction and its strong capabilities in rare earth processing. However, the report from Tom’s Hardware also suggests that as global industries adapt and build out their own supply chains, the long-term impact of these restrictions may gradually diminish.
(Photo credit: Baogang Group)
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